What's Happening?
The U.S. Equal Employment Opportunity Commission (EEOC) is set to release EEO-1 Component 1 reports for federal contractors, making workforce demographic data publicly available. This follows a legal battle initiated by the Center for Investigative Reporting in 2019, which sought access to these reports under the Freedom of Information Act (FOIA). The Department of Labor (DOL) and the Center for Investigative Reporting have agreed on a timeline for disclosure, with data for 'bellwether' contractors released on February 11 and the remaining data set to be released on February 25. These reports, which federal contractors with 50 or more employees must file, detail workforce composition by job categories and demographics but exclude personal identifiers
and salary information.
Why It's Important?
The public disclosure of EEO-1 data could have significant implications for federal contractors. The data may be scrutinized by journalists, advocacy groups, and researchers, potentially leading to public criticism if workforce compositions deviate from industry norms. Additionally, the data could be used by plaintiffs' attorneys to identify potential targets for discrimination or pay equity litigation. The availability of this data may also influence prospective employees' decisions and affect client and stakeholder relations, particularly for investors with Environmental, Social, and Governance (ESG) mandates.
What's Next?
Federal contractors are advised to review their EEO-1 reports for accuracy and trends before the public release. They should also conduct a privileged legal review to assess potential vulnerabilities and develop a communications strategy to address any concerns from employees, media, or stakeholders. Proactive measures to address any identified issues are recommended to mitigate potential legal and reputational risks.
